I had an interesting conversation with Buzz Schmidt of Guidestar UK. He claims that Warren Buffett did not give $30BB to the Gates Foundation, as was widely publicized. Schmidt's read of the Buffett announcement (as reported in Fortune Magazine) is that Buffett gave 5% of the value of a set amount of Berkshire Hathaway stock. Under certain likely circumstances, which Schmidt details in an upcoming piece in Alliance Magazine, Buffett figured out a way to give the Foundation an awful lot of money (as long as Bill and Melinda Gates remain actively involved), while holding onto even more of it. If he's giving 5% of the value of the shares, that means he's holding on to 95% of the value - thus getting credit for giving $30BB while actually retaining the majority of the pile and watching it grow.

On the face of it, its not too surprising that "America's greatest investor" would figure out a way to make a buck even while giving it away. And its not at all unlike what foundations themselves do, granting 5% of their assets to good causes while investing the other 95% to perpetuate themselves.

Why is this blog called Philanthropy 2173?

This is a blog about the future. The year 2173 seems sufficiently far enough in the future to give us some perspective. As sure as we are of ourselves now, talking about the future - and making philanthropic investments - requires that we keep a sense of modesty and humor about what we are doing. Philanthropy is for the long-term - for the year 2173.